trader, take your point about the IP to 30 day decline. That is was what worried me after the first TXN EFS well.
But following the 30 and 90 days results I think the IP to 30 day decline is a red herring. The 45 and 90 day figures will be the ones to look at.
My rough calcs suggest 6 or 7 wells producing an average of 200bopd net would allow TXN to be self sustaining and pay for one new 1 EFS well per quarter ($8M cost). As that number increases toward 15 they may well be able to afford 2x per quarter. And so on.
I imagine by this time next year TXN will have wells 6 and 7 flowing if everything goes to plan.
That means this should be a very viable business with a great future. But for now it is too risky for some, for sure.
TXN Price at posting:
69.0¢ Sentiment: None Disclosure: Held
